Budget (2): Key points of speech

Chancellor Gordon Brown's Budget speech was, in the words of one commentator, 'heavy on politics, light on economics'. While much of the 'meat' of his policies will be contained in papers which are released immediately after the Budget, here are the key points from his hour-long speech.

Key points

• Inflation was now two per cent and on target and economic growth was 2.5 per cent - again on target.
  
• He had entrenched a "culture of stability", with inflation expected to be in line with the government's target in five or 10 years time
  
• Even with economic crises around the world, Britain's economy had proved "resilient, robust and prudent"
  
• He promised "no return to boom and bust"
  
• Future official statistics would be published by an independent board
  
• Public pay would on average rise 2.25 per cent in the next year, showing financial discipline
  
• Economic growth would be 2.75-3.25 per cent for 2007/8
  
• He had met his "golden rule" on public borrowing and was on course for a £16bn surplus over the economic cycle ending in 2010-11
  
• Net debt was now 36.4 per cent of national income - and would rise to 38 per cent
  
• Net borrowing would be £37 bn, £36 bn next year, then £30bn and to £25bn, £24 bn and £23 bn in the years to 2010-11
  
• The education secretary is to announce a comprehensive programme for recruiting and retaining staff, including signing up 3,000 science teachers and funding after-school science clubs in 250 schools.
  
• Productivity was growing 2.3 per cent - higher than at any time since the 1960s
  
• New targets would be set for trade with China and India.
  
• Extending the research and development tax credit by doubling from 250 to 500 employees the size of companies able to claim higher credit
  
• There would be new summer schools for entrepreneurs
  
• There were now 170,000 more people in work than there were at the time of last year's Budget
  
• New help for working women, including doubling training for women with low skills and addressing pay discrimination
  
• 160,000 new homes had been built in the last year
  
• Deputy Prime Minister would give details of plans to £970m for shared equity schemes to help 35,000 people get onto the housing ladder
  
• He rejected calls for the abolition of the climate change levy and instead he was planning to index the charge in line with inflation from 2007 to cut CO2 emissions further
  
• He would propose a World Bank scheme to help developed economies to invest in new forms of energy in developing nations
  
• A new £1bn energy and environmental research institute was being set up, funded by government and private industry
  
• New incentives for piloting smart metering and a new labelling scheme for energy efficient goods to make homes greener
  
• A quarter of a million extra homes would be insulated over the next two years
  
• Cars with the lowest rate of emissions would pay no vehicle excise duty but the one per cent of most polluting cars would pay £210
  
• Postponed the usual annual inflation increase in fuel duty until 1 September
  
• The personal tax allowance would rise from £4,895 to £5,035
  
• Not to cut the taxes for families further but instead use the money to raise the child element of the child tax credit by 14 per cent over the next few years
  
• The Child Trust Fund would be boosted when children reached seven years old, as well as when they were born
  
• Child care vouchers would increase by £5 a week to £55
  
• Normal annual inflation rise of 1p in duty on a pint of beer, but duty on cigarettes would rise 9p
  
• The exemption on stamp duty would be raised to £125,000 and the level at which inheritance tax begins to be paid would rise from £275,000 to £325,000
  
• Funds would go to a memorial for the victims of the 7 July bombings in London and £1m would go to Britons injured in terrorist attacks at home and abroad
  
• There would be £200m extra given to promote international peacekeeping
  
• There would be £600m available to fund world class British athletes
  
• There would be annual national competitions for schoolchildren in Olympic events
  
• There would be a new national sports foundation, with £34m from the government and other funding from private companies
  
• There would be another £2m for evening sports clubs for young people in a scheme run by police, premier league football clubs and community groups
  
• The first £6bn in government efficiency savings had now been made, with cuts in civil service posts
  
• The most important investment in the future would be in education and Britain could not afford wasted potential
  
• Further education would be free of charge for the first time up to the age of 25, with adult learning grants to help with the cost of living
  
• Each college would get a "step change" in the involvement of employers and resources would be redirected from "failing course" to the best courses which employers wanted to see
  
• Raise the amount spent on each state school pupil to the level seen in private schools now to £8,000
  
• Over five years, investment in schools would rise from £5.6bn now to £8 bn a year
  
• By April next year, the number of community support officers will more than double from 6,000 to 16,000
  
• Free off peak national bus travel for pensioners in every part of the country